Huarui Precision(SH:688059)2021-03-30 16:00Financial Performance - The company reported a distributable profit of RMB 179,507,247.43 as of December 31, 2020, with a proposed cash dividend of RMB 10 per 10 shares, totaling RMB 44.008 million, resulting in a cash dividend payout ratio of 49.44%[5]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% growth compared to the previous year[22]. - The company's operating revenue for 2020 was ¥312,185,917.22, representing a year-on-year increase of 20.57% compared to ¥258,929,016.20 in 2019[23]. - Net profit attributable to shareholders was ¥89,004,917.53, up 23.94% from ¥71,811,923.45 in the previous year[23]. - The basic earnings per share for 2020 was ¥2.70, reflecting a 23.85% increase from ¥2.18 in 2019[24]. - The gross margin improved to 40%, up from 35% in the previous year, reflecting better cost management and pricing strategies[22]. - The company's total assets increased to ¥618,375,995.49, a growth of 16.44% from ¥531,045,696.46 at the end of 2019[23]. - The net profit after deducting non-recurring gains and losses was ¥88,334,901.43, which is a 29.61% increase from ¥68,153,294.58 in 2019[23]. Research and Development - Research and development investments increased by 30%, totaling 150 million RMB, aimed at enhancing product innovation and technology[22]. - The company has developed core technologies in four key areas: substrate materials, groove structures, precision forming, and surface coating, enhancing the performance and manufacturing processes of its products[34]. - Total R&D expenses increased by 16.18% year-over-year, reaching ¥197,524,286.2, compared to ¥170,013,724.3 in the previous year[56]. - The company has applied for a total of 66 patents, with 46 granted and 33 currently valid, including 10 invention patents[54]. - The company has successfully developed 9 types of nano-coating materials and 20 coating processes, significantly enhancing the comprehensive performance of products[51]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[22]. - The company plans to continue expanding its dealer network and enhance its market influence through the establishment of specialty stores, aiming to become a leading supplier of comprehensive cutting solutions in China[40]. - The company is focusing on the development of ultra-fine nano hard alloy materials, with a total investment of ¥3,200,000 planned for the project[59]. - The company aims to enhance its capabilities in the aerospace tool market by focusing on the development of high-performance materials for difficult-to-machine materials[49]. - The company is exploring strategic acquisitions to enhance its product portfolio and market reach, with a budget of 300 million RMB allocated for potential mergers[22]. Corporate Governance and Compliance - The audit report issued by Tianzhi International Accounting Firm confirmed the accuracy and completeness of the financial report without reservations[4]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[7]. - The company’s board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[4]. - The company has not disclosed any special arrangements for corporate governance in the report[8]. - The company has committed to adjusting its profit distribution policy in accordance with national regulations and the company's operational conditions, requiring approval from the board and shareholders[136]. Risk Management - The company has disclosed various operational risks and corresponding mitigation measures in the report, emphasizing the importance of risk awareness for investors[4]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a substantive commitment to investors[6]. - The company is facing risks related to technology upgrades and potential loss of core competitive advantages if it fails to keep pace with industry developments[80]. - The company anticipates potential market pressure from the increasing performance of ceramic and superhard tools, which may encroach on the traditional market for carbide tools[85]. Shareholder Relations and Profit Distribution - The company plans to implement a stable profit distribution policy, with cash dividends not less than 10% of the distributable profits if no major investment plans exist[133]. - Future cash distributions will aim for a cumulative profit distribution of at least 30% over the first three years post-IPO[133]. - The company will communicate with minority shareholders regarding profit distribution proposals, ensuring their opinions are considered in decision-making[135]. - The company did not distribute any cash dividends in 2020, maintaining a cash dividend of 10.00 RMB per 10 shares in 2019 and 3.00 RMB in 2018, with a payout ratio of 49.44% in 2020[137]. - The company’s profit distribution policy adjustments must be detailed and justified in proposals submitted to the shareholders[136].